Caesars Entertainment: Tens of thousands of terminations?
The Corona crisis has affected numerous companies and Sectors shaken up. The USA has been particularly hard hit by the pandemic. They, in turn, are also home to numerous large gambling companies. And they are obviously struggling with the effects of the crisis. The gambling giant Caesars Entertainment has now announced a blatant move. In order to bridge the current imbalance, around 90 percent of the employees are to be released. It is questionable whether everyone will really return to their jobs after the crisis is over.
USA in Corona stranglehold: 90 percent of casinos closed
Die Corona-Pandemie hat die Wirtschaft weltweit weitestgehend lahm gelegt. Millionen Arbeitnehmer sind zuhause, Geschäfte haben geschlossen. Zunächst steht die Gesundheit aller Menschen im Vordergrund. Gleichwohl bringen die Corona-Probleme aber auch massive wirtschaftliche Herausforderungen. The pandemic is apparently hitting the USA particularly hard. Here the number of deaths is currently rising alarmingly fast. Forecasts assume bad total numbers at the end of the pandemic. The gambling industry is also struggling with this imbalance of problems. And even quite massively. The United States Gaming AssociationAmerican Gaming Association (AGA) Commission recently stated that the industry's financial losses could total more than $21 billion.More than 90 percent of US casinos are closed.
Together with the authorities and the US government, a plan is to be drawn up in the coming weeks and months to keepdamage to the industry as low as possible can be. But some companies are already struggling with enormous problems, as a look at the gambling giant fromCaesars Entertainment shows.
Caesars Entertainment releases 90 percent of its employees
In order to be able to survive the financially difficult situation, the gambling group has decided to take a difficult step.It is expected that around 90 percent of the employees in the USA will first be released or temporarily laid off. Tens of thousands of employees of the US giant could be affected. According to its own information from February, the group employs a total of around 64,000 people.The company operates 36 casinos and hotels in the USA, seven alone in Las Vegas, which is currently "locked down". It is obvious that a situation like this cannot be maintained for long. According to the group, an alternative is apparently out of the question. After all, the employees should continue to receive wage payments for two more weeks. The health insurance contributions will also be taken over by the Group up to June 30th. In the current situation, however, nothing more can be done.
Caesars boss Tony Rodeo emphasized in a statement that it would be adifficult but necessary step:
“Angesichts der Schließung unserer Immobilien unternehmen wir schwierige, aber erforderliche Schritte, um die Finanzlage des Unternehmens und seine Fähigkeit zur Wiederherstellung zu schützen, wenn die Umstände es uns ermöglichen, unsere Gäste und Mitarbeiter wieder in unseren Einrichtungen begrüßen zu können (…). Das Unternehmen ist mit einer starken operativen Leistung in diese Krise eingetreten, die zusammen mit den Schritten, die wir nun unternehmen werden, für die Zukunft unseres Unternehmens von entscheidender Bedeutung ist.“
Specialärgerlich für den US-Riesen: In Great Britain, the group is currently faced with a fine worth millions. The British Gaming Authority is demanding around 13 million pounds from the company because the Americans are said to have violated license conditions. These include guidelines to protect against money laundering. Certainly not good news in this financially difficult time.
Crisis not an exclusive problem for the USA
The US gambling companies are by no means alone in their concerns about the crisis. There is enormous uncertainty in the industry worldwide. Land-based gambling companies in particular are under pressure. Betting providers are unable to provide bets due to ongoing cancellations. Casinos are closed worldwide and therefore also bring no sales.In Kenya, the industry recently warned that financial support should not be neglected. Several thousand jobs would depend on the companies in the stationary area. The trade association of the Canadian slot machine industry therefore recently called for urgently needed support from the government. In addition, the association called for even more action to be taken against illegal offers from the Internet in these times. They would often take advantage of the moment and want to win the people currently in their living spaces over to their side. According to DAWlegal gambling market would be massively burdened without appropriate protection., the
In Italy, the gambling industry is already a big step forward. A few days ago, Prime Minister Giuseppe Conte put together a rescue package for the economy, which will also benefit the gaming industry.The rescue package is worth around 25 billion euros, which, for example, is intended to secure salary payments to employees or serve to repay mortgages. The help is primarily intended for rescue services or healthcare services. But also "endangered sectors", and that is now the gaming industry, can get their piece of the pie. For example, gambling companies can completely suspend taxes due in April. These would then be raised again first in May. In addition, payments for compulsory insurance and social security contributions may be temporarily suspended. Endangered corporations whose license would have expired in the coming weeks have also been granted a license extension of six months. Overall, according to the Italian head of government, this package should only be thebeginning of a large-scale aid program. However, one is also dependent on the help of other European nations. Italy is committed to so-called corona bonds, with which aid is to be combined across Europe. So far, however, those bonds are still a major issue in politics.
Where is normal operation?
It is not yet possible to estimate when the gaming industry will be able to return to normal operation.Especially in badly affected countries like the USA or Italy the lockdown should last a few more weeks. The Canadian gambling industry is at least hoping to be able to offer sports betting again in the coming weeks. Everything depends on when the ball will start rolling again in the Bundesliga or in other sports.